The daily herald. [volume] (Honolulu, Hawaiian Islands) 1886-1887, 1887-01-13

London Stock Exchange placed the
bonds at S per cent premium"
Referring to Mr.. Armstrong; visit to
the Islands in behalf Of the English
capitalists, the interview says -
"Flnding the taxable property about
$50, 900, the population 100000
people, and the exports $4,000, 900,
the agent placed the borrowing capacity
at $4,000, 900, but reported that any
amount above that sum would require
the pledge Of specific revenues under
the control Of the syndicate for the
payment Of interest, and the establish
ment of sinking fund for the pay
ment Of the principal. No arrange
ment pledging the control Of the reve-
nues to parties outside of the King
com could meet the views Of the King,
and, therefore, only two million loan
was negotiated to cut down expenses
If interest and relieve the Government
from what was regarded as a mild fea-
ture Of commercial tyranny"
The statement is made that previous
loans we're principally expended in pro-
noting immigration, and that foreigners
from Caucasian countries have pros
pered in the Islands. Political signif-
canoe is disclaimed in these words -
"The loan cannot be characterized
properly as being English, as one-fourth
Of the bonds we're taken by Hawaiian
investors, residents of the Kingdom.
The financial agent affirms that the
loan has no political significance what
ever There was no intention OF hurt
ing the Spreckels' interests, but on the
contrary everything will be done to
assist Mr.. Spreckels in his commercial
enterprises there as much as any other
capitalist, thereby increasing the taxable
property in the Kingdom and swelling
the couniry's exports and the value Of
its trade"
Then, as to the productiveness of
the Kingdom -
'Mr Macfarlane estimates that the
country is the most productive in the
world, asserting that statistics will show
an export value of over ST. so per annum
per capita, which is without precedent
in history, many European nations not
averaging over $40 per head of their
population. Trade and social relations
incline toward the United States, al
though the Kingdom has treaties with
England, Germany, France, Austria,
Russia and other great nations; also,
treaties with Japan and China, but the
very act of the Kingdom in the bond
contract provides for the payment Of
interest and principal in United States
gold coin"
The rumor that the King desired q
large navy with elaborate equipment to
visit foreign countries is said to be I'M
founded by Mr. Macfarlane. All that
was wanted was a dispatch boat or re
venue cutter, and the agent stated the
various services whereby such vesse
might be very useful, adding, "Thc
motives which prompted this suggestion
were humane and Christian, and it i:
expected that the Government will ex
pend $50, 900 or 500, 900 70 build a
vessel of the kind needed
AS to why the loan was negotiated
abroad, Mr.. Macfarlane thus speaks =
"Et may be said that the King hai
autocratic power. He can absolutel!
veto any Act of the Legislature, but il
the exercise Of this power he has beer
discreet, prefcrring to study the want
of his people and develop the resource
of these islands. The loan Of $4,000,
900 would have been negotiated in Sal
Francisco, New York or Boston ha'
not money been cheaper IN London
Paris and Vienna, and banking syn
d,cates keener in recognizing the .ad
vantages of long investments on goo'
security
Referring to the reign Of the presen
monarch the agent says: "Kalakaua'
reign has been one of unvarying sue
cess; he is endowed with superior it
telligence and broad and enlightene
views of ststemanship." Thea he tell
of His Majesty's visit TO General Gran
in 1876, the ratification Of the Rec
procity Treaty, and, in consequence {
the expansion of industry following ths
! compact, the Kings tour round tn
world for the purpose Of estabishln
close friendly relations with the Cover
j ments of populous countries and secu
, ing their consent to the emigration {
their subjects to his rich group of i
0 ands. This subject is concluded I
follows; "Chinese immigration is di
c couraged by the King, and he h,
y practically put an embargo on it in d
c ference to the American sentimeI
s against Chinese labor. The intima
6 friendly relations between the Cover
n ment of Japan, Portugal and Hawa
l. assist in procuring for the islands the
4 necessary supply of labor from the
e populous countries, and already Il
q Japanese and Portuguese have been j
IS troduced by Kalakaua into his realm
s. the extent Of thousands. The trade
n San Francisco with the islands und
d Kalakaua's reign Of about ten years h
A incrAasAd franz Or rOo ooo annually